Spring 2024 Budget.
The Spring 2024 budget was announced last month, and with inflation expected to fall below 2% this year, and the economy headed for steady growth, what are the implications for businesses?
Businesses were given measures to improve opportunity, investment potential and stabilise the economy for continued growth. The Chancellor said the economy is expected to grow by 0.8% this year and 1.9% next year, and continue on this trend until 2027.
We have summarised the key highlights for businesses.
VAT boost for business
The Chancellor’s increase in the VAT threshold for small businesses from £85,000 to £90,000 came into effect from 1 April 2024.
National Insurance cut by 2p
The Chancellor revealed there will be a 2p cut to National Insurance from the 6 April, bringing this down from 10% to 8%, having already fallen by 2p in last year's Autumn Statement. For those who are self employed this figure drops from 8% to 6%. This cut should have a positive impact on consumer spending, ultimately boosting business and economic growth.
Full expensing to be extended
It was announced that the permanent full expensing scheme tax cut will also be applicable to leased equipment. Through the scheme, businesses will be able to lease new equipment and offset the costs against their tax bill, reducing their tax by up to 25% for every £1 invested. This is a positive step to stimulate business investment.
Growth Guarantee Scheme
The Government has invested £200m into a new Growth Guarantee Scheme, an initiative that will support UK SMEs. This access to new finance will be positive news for SMEs currently managing the ongoing cost of high overheads, whilst investing in growth.
What does this mean for businesses?
Businesses were given measures to improve opportunity and investment potential, and as the economic climate stabilises and inflation is expected to fall, this brings more opportunities for businesses to grow.
Are you looking to acquire new equipment? Contact us to discuss our zero deposit facilities and low-start lease options.
Email Sophie Carter or call her on 01865 986 468
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